Rs 443.5 crore order and 5,191 per cent returns: Board of this cable manufacturing company allotted 5,00,000 shares to non-promoter!

The stock gave multibagger returns of over 200 per cent within just 1 year and 1,000x per cent over three years.

Today, shares of Paramount Communications Ltd plunged 3.98 per cent to Rs 63.59 per share from its previous closing of Rs 66.33 with an intraday high of Rs 68.79 and an intraday low of Rs 63.02. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 28.62.   

The Share Allotment Committee of the Company's Board of Directors met on March 19, 2024, and allotted 5,00,000 equity shares with a face value of Rs 2 each to non-promoter warrant holder Ali Akbar Parvez Khan. These shares were issued upon the exercise of warrants previously sold to Mr Khan at a price of Rs 21.57 per warrant. Mr Khan exercised his right to convert the warrants into the equivalent number of company shares. As a result of this allotment, the issued, subscribed, and paid-up capital of the company has increased from Rs 60,58,69,740 (divided into 30,29,34,870 shares) to Rs 60,68,69,740 (divided into 30,34,34,870 shares).

Paramount Communications Ltd produces a variety of wires and cables, including power cables, telecom cables, railway cables, and specialised cables. The company boasts a substantial client base, including esteemed organizations such as Larsen & Toubro, Steel Authority of India (SAIL), BSES, Bharat Heavy Electrical Ltd, Power Grid Corporation, BSNL, Tata Steel, Alcatel Lucent Enterprises, ISRO, Indian Railways, Indian Oil, NTPC, among others.

The company announced stellar Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 30.3 per cent to Rs 284.25 crore, operating increased by 35.5 per cent to Rs 25.66 crore and profit after tax (PAT) increased by 53.8 per cent to Rs 22.03 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 25.7 per cent to Rs 747.23 crore, profit before tax (PBT) increased by 65.1 per cent to Rs 56.1 crore and profit after tax (PAT) increased by 65 per cent to Rs 56 crore in 9MFY24 compared to 9MFY23.

These remarkable outcomes are supported by a robust order book totalling Rs 443.5 crore as of December 31, 2023. The portfolio is diversified across various sectors including power, railway, telecom, house wire, export, and EPC projects.

The company's shares exhibit an ROE of 21.2 per cent and an ROCE of 14 per cent. The stock gave multibagger returns of over 200 per cent within just 1 year and 1,000 per cent over three years. Over a decade, the stock has soared from Rs 1.30 per share to an intraday high of Rs 68.79 per share, achieving multibagger returns of 5,191 per cent. Investors should keep an eye on this cable manufacturing stock.

Disclaimer: The article is for informational purposes only and not investment advice.